After your offer to purchase has been accepted, it is everyone's hope that that we won't be dealing with bumps in the road during the condition stage. However, more times than not there are issues that come up.
Here are a few common 'bumps in the road' that you should anticipate and have a plan for:
I have had many upset home buyers tell me" why I haven't gotten approved yet? I was preapproved already no problem!". Traditionally 5 banking days had been given for financing to be approved by your bank or mortgage broker. There has been pressure in recent years to extend that period of time to 7 business days, and sometimes even more. There are many reasons for the delays that have become 'normal' with financing as the banks and insurance companies become increasingly strict on making sure a home buyer will be able to fulfill their financial obligations.
A quick tip: I always suggest to my home buyer clients to call your mortgage broker every day, starting on the 2nd banking day after they receive the contract, in order to keep the buyer's file at the front of their work schedule. This is especially true in the busty summer months, when the flood of business can leave your file at the 'bottom of the pile'.
Home Inspection Issues
Planning for what 'deal breakers' are for you as the buyer beforehand will help you deal with any issues that may come up . This is occurs the most in the home inspection stage. It is rare that a home buyer will expect a whole bunch of issues with the home they have chosen to buy. This is especially true for properties that are newer, have been substantially upgraded, or are higher priced. Often the expectation is that home buyers have eliminated the potential for home inspection issues because they have done their best to look for these issues during their home viewings. However home inspections can also be great opportunities to save money on needed upgrades that are discovered - saving you money in the process!
Condo Document Issues
Usually the biggest issues that come from reviewing the condo documents have to do with the finances of the corporation, a legal matter that could cost the corporation a lot of money, or infrastructure improvement that may require a special assessment in the near future. There are also bylaws that may clash against your lifestyle (example - no pets allowed, adults building only, etc,) that would terminate the sale. However, a lot of these details can be verbally inquired about before the offer stage to make sure that the home buyer's time isn't wasted .
Knowing those most common hiccups during the condition phase can possibly turn getting a lemon into lemonade. It is important to know what scenarios as a home buyer you are comfortable working through (many of which that can make your deal better off in the process) and which situations that are 'deal breakers'.
Dealing with bumps in the road during the condition stage is a common occurrence - be prepared to make sure that you get the best of them!